Alternative trading system Brut is to introduce a new rebate programme for brokers placing larger orders, in a bid to enhance liquidity over the site.
Under the new programme, to take effect at the beginning of November, broker-dealer customers who initiate orders that result in trades equal to or greater than 500 shares will receive $.001 per share. There will be no dollar cap or expiration date on the programme, which applies to Nasdaq stocks traded by US customers.
"Our customers, and market makers in particular, are facing increasing pressures to be profitable as a result of decimalization and the current market environment," explains Richard Schenkman, CEO of Brut. "We are helping to provide them with a solution and, in the process, to deepen liquidity for both our broker-dealer and institutional customers."
In addition to its rebate programme, Brut has recently added Pegging functionality to all of its interfaces, including FIX and Universal Market Access - the trading interface used by its broker-dealer customers.
Brut is owned and supported by 26 Wall Street firms, including Bear Stearns, Goldman Sachs, Knight Trading Group, Merrill Lynch, Morgan Stanley, Robertson Stephens, Salomon Smith Barney and SunGard Data Systems.